Executor’s Guide to Inheritan...

Author: Wolfe Ossa LawCategories: Elder Law

If you are an Executor or Administrator of an estate, you are most likely looking to obtain Inheritance Tax Waivers to release the decedent’s assets, such as NJ bank accounts,
NJ stock, and NJ real estate.

There are several steps to follow, and a few things you need to know before
this can happen.

  1. What are the different types of waivers?
    A self-executing waiver (do-it-yourself) and the 0-1 waiver (issued by the Division of Taxation) are the  different types of waivers. New Jersey banks are prohibited from closing a decedent’s bank accounts
    without one of these forms:
    Form L-8 Self-Executing Waiver Affidavit can only be used when there is no Inheritance or Estate Taxes due (see below).
    Form 0-1 is a “waiver” that can only be issued by the Division of Taxation.
  2. Are there any Inheritance or Estate Taxes Due?
    Your next job as Executor/Administrator is to figure out if any Inheritance or Estate taxes will be due. This will determine what forms or returns you will need to file.
    Besides the Federal estate tax, there are two separate State taxes related to a person’s death: the Inheritance Tax and the Estate Tax. You may owe one, but not the other.

    • Inheritance Tax mainly depends on the relationship between the deceased person and the beneficiary.
    • Estate Tax depends on the size of the decedent’s gross estate and the decedent’s date of death. You will have to file an Estate Tax return if the estate value is higher than the exemption level for that year.

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